By press time, about 26 private transport companies were still pleading with government to honour it’s commitment to disburse about Rwf8 billions in subsidy.
The association of Public Transporters (ATPR) has written two letters to the government, literally begging for the funds but they not received any response as to why the funds have delayed.
Most of them are undergoing financial distress and fearing to ground some of thier buses due to budget constraints resulting from distorted revenues because or the government’s subsidy.
The President of the association,Theoneste Mwunguzi, told Taarifa that he is has given up and only waiting for government to disburse the funds whenever it deems it fit.
“We have no powers to force government,” Mwunguzi said. “It is a very disturbing scenario and we don’t seem to see a positive outcome anytime soon. Unfortunately, the effect is far reaching.”
In the letters written, which Taarifa has seen copies, the association informed 12 institutions including the Prime Minister, Ministers of Finance, Trade, Infrastructure, Education among others.
None of them has respond to the association.
The regulator, RURA, officials say the matter is in the hands of the Ministry of Finance, MINICOFIN.
Taarifa was told by a source in the Ministry that the issue is in the hands of the state Treasurer who has not explained as to why the funds are being held.
This is not the first time government delays disbursing the funds.
In May, the transporters had also pleaded for delayed payments accrued from the Economic Recovery Fund (ERF) fund subsidies.
Government was supposed to pay them about Rwf3 billion covering the month of February, March, April and May, 2022.
They received the funds in June.
On February 8, 2022, ATPR wrote to President Paul Kagame, in a letter whose copy is under our custody, requesting him to intervene and instruct government to respect its commitment to offer subsidies to transport companies due to the effect of Covid-19, under the economic recovery fund.
The ERF was established by the government of Rwanda to support the recovery of businesses hardest hit by COVID19 so that they can survive, resume operations and safeguard employment, thereby cushioning the economic effects of the pandemic.
The National Bank of Rwanda was appointed as the Fund Manager.
The government had committed to support the transport sector by subsidizing the cost of transport charged to passengers by paying Rwf4.9 per kilometer.
By the time of writing to the President, government owed ATPR billions of Francs for the months of October, November and December 2021.
All the 26 companies operating across Rwanda with more than 1,000 buses and coasters, employing about 5,000 staff are wondering if they should write to the President again since no one else seems to be concerned or wait until the funds come.
“Look, we have raised our voices enough, we made our issue heard all the way to the head of government, and no response has come through. What else can we do?’ Mwunguzi said
Meanwhile, as the transporters lament, some of them told Taarifa that they have already started grounding some buses and will gradually cut down their fleet and employees to be able to run without stretching up to a point of closing shop.
Who will save the companies?
